UBS AM cuts TIPS Ucits ETF price

By: Adrien Paredes-Vanheule | 20 Apr 2017

UBS Asset Management has cut the total expense ratio of its UBS ETF Barclays TIPS 1-10 Ucits ETF to 0.15% from 0.20% for the unhedged share class and to 0.20% from 0.25% for currency hedged share classes.

The move follows massive inflows of $470m in the ETF that UBS AM explains by investors’ search of protection from increased concerns of rising inflation in the US following Trump’s election and expectations on policy change.

The ETF provides exposure to a benchmark of US Treasury Inflation-Protected Securities (TIPS) with shorter duration.

Total assets under management of the UBS ETF Barclays TIPS 1-10 UCITS ETF, launched in September 2016, currently amount to over $600m.

Clemens Reuter, Global Head of Investment Specialists Passive & ETFs, said: “After an extended period of low interest rates there is growing evidence in markets of inflationary pressures starting to build, particularly in the US. With this innovative fixed income product, our clients are able to protect long-term purchasing power and gain access to an asset class that compounds the real rate of return.

“UBS Asset Management continues to expand its fixed income ETF range by providing solutions which meet the needs of clients. Fixed income represents a growth area for the passives and ETFs market,” he added.

Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.